Forging cross-cultural relationships in a new American landscape

DSN Retailing Today, May 17, 2004 by Arminda Figueroa

The 2000 Census figures--which indicated the largest growth ever in U.S. population, especially, among ethnic populations--served as a wake-up call to retailers, licensors and programmers nationwide. The Hispanic population exceeded all projections, becoming the largest minority group in the United States, making up 13.5% of the U.S. population (more than 35 million people). It's also the single fastest-growing segment in the country. Importantly, 52% of these Latino households have children, and approximately 25% of those children are 9 years old or younger.

It's easy to imagine the implications. By just 2007, the Latino population will grow by 9%. It is clear that there is a shift in the country's demographic makeup, and it's time for marketers, retailers, licensors and programmers to rethink their business strategies.

Allowances can no longer be made in the interests of being politically correct. Instead, the focus must be on the needs and wants of our country's future consumers--a richly multicultural society and economy--that will generate increased revenues and grow and sustain businesses. Multiculturalism, while full of goodwill, is actually a sound business strategy.

Moving ahead, decision makers in all business sectors, especially media and retailing, must dig deeper to understand a broader range of consumer needs. Cultural heritage, language and other facets that shape the contexts of our lives must be part of this analysis.

It's this sort of thinking that is the impetus behind Scholastic Entertainment's new multimedia brand initiative called Maya & Miguel, targeted to all kids 6 to 11 years old. Scheduled to debut on PBS KIDS in the fall of 2004, this television series will celebrate the diverse set of cultures that make up the American mosaic and address the need for cross-cultural understanding, especially among children. The program's diverse group of characters encourages kids to look at the differences that make us individuals, without succumbing to stereotypes. The show is also designed to support English language acquisition and use. This is the type of programming that is designed with the hopes of best serving the needs of our audience today.

For retailers, the shift in demographics and the need to create new product offerings and marketing approaches is equally clear. To best serve the next generation of consumers, a new approach to the changing makeup of America will be required. Meeting with prospective partners have made it clear that retailers see it as essential to embrace the diversity of the population in order to forge new ground in their businesses.

By now, retailers have realized that Hispanic families shop together and also that their buying power is measured in billions. A good businessperson finds ways to attract that consumer base. By creating media that appeals to all communities, and with special emphasis on the Hispanic population, retailers put themselves in a strong position to develop better relationships, and ultimately a stronger client base, with the increasingly important ethnic communities.

Some retailers are ahead of the curve, such as Sears, Target and Wal-Mart, with the latter identifying more than 1,700 stores that need to carry different product mixes based on local ethnic populations. By taking the changing demographics into account, widening the scope and better understanding the lives of their diverse customers, retailers will likely increase their sales in the long term.

Just as the programming and licensing industries are adjusting to our new cultural transformation, retailers, too, must carefully consider how best to move forward in the new American landscape.